Louisiana Residents Could Start Paying Taxes On Services Like Netflix And Hulu [Video]

It's no secret that the Louisiana budget is in the toilet. Gov. John Bel Edwards is looking everywhere he can to find money and get the state back into shape. WWL is reporting Edwards is looking to pass a new tax that will make streaming services like Netflix and Hulu more expensive for Louisianians. But, is it even legal?

Reports show that 1.1 million households are no longer watching traditional TV. Instead, they've cut the pricey cable bill and use internet streaming services for entertainment. Louisiana is looking to get it's slice if that streaming revenue pie.

The Louisiana streaming tax proposal would be the same as the state's sales tax, now at five percent. The Governor's office said the streaming tax, as well as new taxes on several other goods, would generate around $200 million dollars each year.

An extra $200 million for our state sounds like a great idea to me, but not everyone agrees. There's also the issue of legality.

Chicago is currently being sued for charging a 9% sales tax on video streaming, and Pennsylvania is charging a 6% tax on everything from apps to downloads.

The Governor's office says "Services such as Netflix that is delivered over the internet is not a tax on the internet".